BOMA & Industry News 

Headlines

• Justice Department Issues Final Rule Revising ADA Regulations (07/29/10)

• BOMA Conference Highlights – Leading the Future (07/01/10)

• Taxes, Economy and Building Star Top Roundtable Discussions (04/22/10)

• Winter Business Meeting and National Issues Recap (02/16/10)

• Board of Governors Highlights (02/16/10)

• Help for Earthquake Victims in Haiti (01/28/10)

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Justice Department Issues Final Rule Revising ADA Regulations

The U. S. Department of Justice (DOJ) has amended its regulations implementing Title III of the Americans with Disabilities Act (ADA), which applies to commercial buildings and public accommodations.  This is the first comprehensive revision since the 1991 ADA Accessibility Guidelines (ADAAG) went into effect.

 In making this long anticipated change to the ADA regulations, DOJ adopted standards contained in the U. S. Access Board’s 2004 ADA/ABA Accessibility Guidelines impacting a broad array of commercial building types. The new standards address a variety of building elements, including new requirements for restrooms, reach ranges, sales and service counters, employee work spaces, telephones and stairways.  The revised rules also impact power-driven mobility devices such as Segways, communication services, such as remote interpreting of video conferencing, and lodging reservation systems.

BOMA and its industry coalition partners were successful in securing major concessions in the revised regulations for the commercial real estate industry on the two major issues that facilitate a less problematic and more cost-effective transition to the new rules.

The first is a broad “grandfather” clause that exempts all building elements that were constructed or altered in compliance with the 1991 rules.  This grandfather exemption is in effect until those elements are subject to a planned alteration and also applies to the “path of travel” to an altered area.   The second is the inclusion of a reasonable time within which to comply with the new rules.  The revised regulations do not become effective until six months after July 27, 2010 but are not mandatory for new construction and alterations and barrier removal until 18 months after publication.  During the period from late January, 2011 and January 2012, projects may be designed and constructed in compliance with the current ADAAG (1991 regulations) or the revised 2010 regulations.

A more comprehensive review of the details of the new ADA regulations is under development by the BOMA staff and will be available on the BOMA website (www.boma.org) soon.  For more information, contact Ron Burton or visit the DOJ’s ADA webpage.

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BOMA Conference Highlights – Leading the Future

BOMA Conference Visit the BOMA YouTube Channel to see the videos from each day.

More than 2,000 delegates and 5,000 total attendees assembled in Long Beach, Calif., June 27-29 for the 2010 BOMA International Conference and The Every Building Show. Attendees tapped into the power of the BOMA network over the course of the conference by connecting with colleagues, exchanging ideas and information, meeting with solutions providers and hearing industry leaders share strategies for success in today’s marketplace.

Monday General Session Highlights

Tuesday General Session Highlights
 

100+ BOMA 360 Buildings Recognized for Excellence

Board of Governors Meeting Highlights

During the Board of Governors Meeting in Long Beach, California on June 27, BOMA Chair Jim Peck announced the approval of several General Consent items:

• New Life Member approval for Rutledge Beacham, RPA, BOMA/Atlanta  (posthumously)
• New Local Association approval for BOMA/Greater Huntsville
• New State Association approvals for BOMA Washington State and BOMA New York State
• New International Affiliate approval for Chinese Office Building Owners and Managers Association (COBOMA)

During the Financial Reports, BOMA Secretary/Treasurer Kent Gibson reporting on encouraging outcomes thus far for 2010, including:

• Higher than budgeted registration and sponsorship for the BOMA International Conference and The Every Building Show® and a sold out Trade Show.
• Highly successful Medical Office Building conference with approximately 75 registrants more than budgeted.
• Partnership Program that continues to be a perennial producer with all of the partners renewing and many for multiyear agreements.
• Largest number of BOMA 360 designations in any quarter to date with 61, doubling the total number of buildings receiving the designation to 122.

BOMA 360 Performance Program Council Chair Dan Chancey, thanked and recognized the BOMA local association that have brought buildings into the program, including BOMA/Dallas and BOMA/Houston for bringing in 20 or more buildings and BOMA/Atlanta for bringing in 10 or more buildings.

Chancey also detailed some of the changes and updates to the BOMA 360 Program, including:

• Renewal changed from annual to 3-year renewal
• Beginning in July, applicants who missed the EER deadline will still be able to apply for the designation (designation will be withheld until the next EER survey is completed)
• Bonus points have been converted to regular points
• Application fees will increase in early July
• Certain sections of the BOMA 360 application will be waived for TOBY regional winners as a comparison of the BOMA 360 criteria and the TOBY criteria indicates that TOBY winners have already satisfied some of the 360 criteria. Watch this space for further information.

Pat Clark, chair, Education Advisory Council, and BOMA Vice Chair Boyd Zoccola reported on Education highlights:

• The Foundation of Real Estate Management Course has been well received and hosted by BOMA local associations across the country. BOMA also delivered a customized version of the course for Waste Management. 
• BOMA International has put on 11 webinars, including a revamped series on sustainability.
• A workshop was developed for the new floor measurement standard for office buildings.
• 40 plus education sessions in 5 tracks at the BOMA Conference.
• 550 attendees came to the 2010 Medical Office Buildings & Healthcare Facilities Conference, up 20 percent from 2009. The sponsorship goal was also exceeded by 50 percent. Sessions focused on healthcare reform, stabilizing markets, innovative ways to dive deals.

Lorie Damon, vice president of Education & Research, BOMA International, and Phil Mobley, vice president, Kingsley Associates, reported on the new 2010 Experience Exchange Report® (EER®), which is available now online at www.bomaeer.com. Users of the online EER can search reports by city, building size, asset type or use, among other options. The reports are comprised of operating income and expenses from 4200 buildings in 250 markets.

During the Advocacy and Regulatory portion of the meeting, Judith Purviance-Anderson, chair, Government Affairs committee, reported on BOMA’s three new policy positions:

Lead Paint: The EPA must not move forward to issue regulations on lead-based paint in commercial buildings absent credible health studies, undertaken in commercial building settings, which determine there is a known or imminent public health emergency. Furthermore, EPA must also consider the impact that any lead-based paint regulations will have regarding energy efficiency and water conservation retrofits in commercial buildings.

Stormwater: BOMA International believes: (1) developed land, as a category, is not a point source under the Clean Water Act; (2) EPA has no authority to regulate impervious surfaces; (3) releases into municipal separate storm sewer systems (MS4s) are not discharges into waters of the U.S.; and (4) for properties where runoff is channelized and discharged into a water of the U.S., EPA has not met the statutory prerequisites necessary to exercise any regulatory authority over such discharges.

Building Star: BOMA International supports legislation, such as the Building Star Energy Efficiency Act of 2010 (S. 3079; H.R. 5476), that would provide rebates and financing programs for energy efficiency retrofits to existing buildings.  However, BOMA International believes that the application of Davis-Bacon prevailing wage and paperwork requirements to the bill diminishes its value and the cost of compliance would outweigh the benefits provided.

The BOMAPAC report showed that more than $51,000 was raised in 2009 and $28,000 has been raised so far in 2010, which includes the more than $9,000 raised during the BOMA/Greater Los Angeles PAC drive during the BOMA International Conference. A special thank you went out to BOMA local associations that participated in the ½ PAC challenge. They include BOMA local associations in Cleveland, Columbus, Fort Lauderdale, Greater Los Angeles, Little Rock, Memphis, San Francisco, Seattle-King County, Suburban Chicago, Kansas City and Wisconsin.

During the Industry Defense Fund (IDF) report, Gordon Hester, Chair, Industry Defense Fund Oversight Committee, reported on the Active IDF Grants for 2010, which includes:

• California Climate Change Study
• Colorado Xcel Energy Case
• Florida Amendment 4
• Carried Interest Ad Campaign
• Real Estate Stormwater Coalition
• Real Estate Lead Paint Coalition

Bill Moebius, chair, Building Codes & Voluntary Standards committee, reported on BOMA’s work on the Codes front, giving delegates a summary of the recent ICC Codes Hearing, where BOMA helped members save more than $7 billion in direct costs and long-term revenues with disapproval of the following proposals to mandate:

• Retroactive sprinkler installation in all existing high-rise buildings.
• Electrical system special inspections and retrofits in existing buildings.
• Smoke detection systems in HVAC ducts and elevators.
• Third-party elevator inspections.
• Additional passive fire protection measure.

Moebius also reported that BOMA’s participation in the development of the nation’s first national model green building standard – ASHRAE 189.1—secured more workable and cost effective provisions and brought consideration of project cost and the need to consider basic business investment principles to the process.

Bill Tracy, BOMA/Denver Metro, reported that it has been a very busy year for the Standard Method Floor Measurement Committee with the approval of five new standards, including:

• Office Buildings: Standard Methods of Measurement (ANSI/BOMA Z65.1 – 2010)
• Industrial Buildings: Standard Methods of Measurement (ANSI/BOMA Z65.2–2009)
• Gross Areas of a Building: Standard Methods of Measurement (ANSI/BOMA Z65.3 – 2009)
• Multi-Unit Residential Buildings: Standard Methods of Measurement (ANSI/BOMA Z65.4-2010)
• Retail Buildings: Standard Method of Measurement (ANSI/BOMA Z65.5-2010)

During the Inclusive Membership portion of the meeting, BOMA Chair-Elect Ray Mackey reported that despite difficult economic times, 34 BOMA local associations experienced positive growth in the past two years. He also told delegates that the BOMA One Baseline Standards have been overwhelmingly accepted by local associations as a strategic planning tool.

Steve Ash, chair, Local Association Services Committee, announced the winners of the Best Practices Awards Program. The winners are…

• Marketing Communications category: BOMA/Boston for their Annual BOMA Benefit and BOMA/Chicago for their “Bid BOMA” Affiliate Awareness Campaign.
• Communications Management category: BOMA/Portland for their Community Relations Program.
• Electronic & Interactive Communications category: BOMA/Atlanta for their GREEN Real Estate Summit website.
• Media Relations/Issues Crisis Management Category: BOMA/Austin for their “2009 in Review” public relations effort.

Guest speaker Michael Miceli, chairman, BOMA Canada, reported on BOMA Canada’s membership, which includes 2,700 members and 555 members-at-large, representing 2.1 billion square feet of office space. Miceli presented on the success of the BOMA BESt building certification program that has certified 1,600 buildings since 2005, and the ongoing pandemic preparedness offerings of BOMA/Canada, which includes a toolkit and planning guide for building operators.

BOMA International’s new Vice Chair and 2010-2012 executive committee members were approved during the meeting.

New Vice Chair:

Joseph W. Markling, managing director of strategic accounts, asset services, CB Richard Ellis, Inc., BOMA/Greater Los Angeles

2010-2012 Executive Committee members:

• Robert M. Brierley, vice president of operations, Boston Region, Brookfield Properties Corporation, BOMA/Boston
• Brian D. Cappelli, vice president of operations, Forest City Commercial Group, BOMA /Cleveland
• Gordon W. Hester, director of commercial management, Kiemle & Hagood Company, BOMA/Spokane
• Wade W. Lange, RPA, FMA, CPM, vice president of property management, Ashforth Pacific Inc., BOMA/Portland
• Jen C. Suddreth, RPA, regional manager, Grubb & Ellis Realty Investors, BOMA/Houston

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Taxes, Economy and Building Star Top Roundtable Discussions

BOMA International Chair Jim Peck and BOMA International President Henry Chamberlain joined business and legislative leaders on Tuesday during the Real Estate Roundtable’s 2010 Spring Roundtable Meeting.  The Roundtable’s legislative focus was on three issues: FIRPTA (Foreign Investment in Real Property Tax Act) reform, finding a solution for carried interest, and trying to establish a Building Star program to create a rebate program to invest in energy efficiency systems.

The FIRPTA effort is geared towards lessening the adverse tax rules impacting foreign investment in real estate. The carried interest discussion focused on the effort of finding a solution short of taxing carried interest as ordinary income to pay for other tax and program initiatives.

Speakers included Federal Reserve Governor Kevin Warsh, Senior Advisor to President Obama Valerie Jarrett,  Publisher of the Cook Political Report Charlie Cook and Chief Economist Co-Founder of Moody’s Economy.com Mark Zandi.

Warsh sees the economy fully in a cyclical recovery and performing at the upper end of expectations from a year ago with consumer consumption coming back, capital expenditures increasing and average hours worked improving. The downside is that a big business led recovery may not generate many jobs, and there is real weakness in Europe and Japan that will not help U.S. exports. Besides a concern about the need to remain focused on future inflation, Warsh is very concerned about the size of the federal deficit and said it was unprecedented in history not being created primarily by war expenses.

Jarrett said the White House’s focus is on creating sustainable economic growth and on regulatory reform to avoid systemic risk. They believe the Recovery Act saved 2.5 million jobs and views the Healthcare Reform bill as something that will trim the federal deficit. There was a lot of discussion about the need to work with the small business community and regional banks to make credit available. Jarrett said that the credit issue is of ongoing concern to the White House and Treasury Department and they will continue to work with real estate to find solutions.

Zandi  gave a somewhat positive economic outlook, predicting GDP growth of 3 percent in 2010, 4 percent in 2011 and 5 percent in 2012. In terms of the unemployment, he predicted a rise to 10.2 percent by the end of the year due to people re-entering the job force and Census workers going off the payroll, with those number eventually dropping – to 8.5 percent by  yearend 2011 and 7 percent  by yearend 2012.

Zandi predicts a somewhat rocky recovery over the next 12 months with relatively dormant hiring, credit remaining tight, a lack of confidence and uncertainty over federal economic policy, the foreclosure crisis growing, and the drag of deficit state budgets. He believes by this time next year the economy will be up and running due to solid business balance sheets and an increase in household net worth, leading to an increase in spending. In terms of the federal deficit, he believes we have until 2012 to figure out a significant long term deficit reduction strategy or risk a global financial riot as countries stop buying our paper. Two other risks to commercial real estate include a continuing lack of construction activity and the 700 banks on the FDIC’s watch list – 500 of which are due to commercial real estate loans.

Political pundit Charlie Cook predicted the Democrats will lose control of the House of Representatives by a few seats this fall, but will retain control of the Senate, albeit it by a slimmer margin. He believes Sarah Palin is a legitimate candidate in 2012 if Republicans think they cannot win back the White House; if they believe they can win it back, Mitt Romney, Tim Pawlenty and others move to the fore. He doesn’t believe the Tea Party will present an independent candidate for president, but that they need to be taken seriously.

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Winter Business Meeting and National Issues Recap

Mixing Business with Politics - BOMA Members Take to the Halls of Capitol Hill

Charlie Cook peers into his crystal ball to discuss the upcoming 2010 elections

from left: BOMA President Henry Chamberlain with Maryland Senator Ben Cardin and BOMA Chair Jim Peck

Senator Isakson (R-Ga.)

Representatives from BOMA 360 Performance Buildings are recognized during the General Session

BOMAPAC image, caption: BOMA Chair-Elect Ray Mackey finds himself trapped between political superstars of opposite parties

BOMA Vice Chair Boyd Zoccola (left, BOMA/Indianapolis President Andy Banister(second from left) and Jeff Wright with Genea meet with Congressman Brad Ellsworth (D-Ind.)(right) on Capitol Hill.

 

By Laura Horsley

 BOMA members throughout the U.S. came to Washington in early February to take commercial real estate’s message straight to legislators on Capitol Hill during the 2010 Winter Business Meeting and National Issues Conference. A record number of meetings on the Hill took place as members met with lawmakers to discuss how issues such as energy, carried interest and leasehold depreciation have a tremendous impact on commercial real estate and the broader economy.

Here are a few highlights:

Senator Ben Cardin (D-Md.), co-chair of the Senate Real Estate Caucus, addressed BOMA members during the “How to Take our Message to Capitol Hill” session, telling attendees that job creation and a strong commercial real estate industry go hand-in-hand. Cardin also spoke about the current tax deductions for energy improvements, saying they are important but noted, “we need to improve it [the deduction] and make it more realistic with actual costs.” 

During the General Session sponsored by AlliedBarton Security Services, keynote speaker Charlie Cook, publisher of the Cook Political Report and Columnist for the National Journal, offered insight into the tumultuous political climate in Washington. Cook referred to independents as the largest and most influential political group, coining independents as “purple America” and suggesting that they look to sway heavily Republican in the 2010 elections.

BOMA 360 Performance Program Council Chair Dan Chancey honored representatives from BOMA 360 Performance Buildings during the General Session. Said Chancey, “BOMA 360 is exactly the kind of program the industry has been asking for and designees are telling us it is the best way to position their buildings as best in class.”

Attendees also heard from Senator Johnny Isakson (R-Ga.)a, co-chair of the Senate Real Estate Caucus, and Representative Danny Davis (D-Ill.). Isakson told attendees that cap and trade is essentially dead in the U.S. Senate and that “tax treatments that incentivize business are needed.”

When it came time to take to the halls of Capitol Hill, BOMA members came out in record numbers to discuss energy and tax issues and the importance of a healthy commercial real estate industry to boost economic recovery.

Winter Business Meeting and National Issues Conference attendees had a chance to network during the Opening Reception, sponsored by Naylor, and swap Capitol Hill stories at the Networking Reception, sponsored by ThyssenKrupp. A very fitting BOMAPAC fundraiser during the Networking Reception had attendees posing for photos with Washington’s Political Elite - even if the politicians seemed a bit stiff.

 

 

 

Board of Governors Highlights

 

By Lindsay Tiffany

 BOMA International Chair Jim Peck kicked off the business meeting with the approval of the general consent, minutes and new members. Peck told the Board of Governor’s that the “power of the BOMA business network is stronger than ever” and that we’re “creating a platform for high performance buildings as we interface with other groups.”


Bob Peck, commissioner of public buildings, U.S. General Services Administration (GSA), was among the guest speakers at the Board of Governors meeting. Peck remarked that GSA appreciates its strong relationship with BOMA and derives value out of BOMA’s meetings, education and the Experience Exchange Report (EER), which the federal government uses to benchmark against the private sector.

Peck briefed the crowd on how GSA is using its $5.5 billion in stimulus money to green the U.S. building stock and create green jobs. Said Peck, “I think GSA has a responsibility to be a green proving ground—to beta test new advances and share our information with you.”

The U. S. Environmental Protection Agency’s Director of ENERGY STAR® Commercial and Industrial Branch Jean Lupinacci also addressed the Board of Governors, praising BOMA and its members for their commitment to energy efficiency. At least 50 percent of all office buildings in the U.S. have assessed their energy performance through ENERGY STAR, which Lupinacci credited in part to BOMA’s market reach and the synergy between the two organizations.

BOMA Canada Chairman Michael Miceli briefed attendees on programs and news from BOMA members in Canada. Miceli reported that the annual BOMEX conference, held this past September in Quebec, saw an increase in attendance, and that BOMA Canada continues to bring  pandemic preparedness resources to the industry, with a toolkit and guidebook available to property professionals. Miceli also discussed the success of “BOMA BESt,” an industry standard for environmental certification with 1,400 buildings certified since 2005. 

BOMA International Chair-Elect Ray Mackey and Vice Chair Boyd Zoccola, presented the Year in Review address, where they stressed the important role BOMA has played over the past year in helping the industry through the economic downturn. Despite current challenges, membership and attendance at events remained strong and BOMA filled critical industry needs by introducing the BOMA 360 Performance Program, the new online EER and two new building measurement standards.

 

BOMA Chair Jim Peck addresses the Board of Governors

GSA Public Buildings Commissioner Bob Peck discusses how GSA will use stimulus money to green federal buildings.

BOMA International Secretary/Treasurer uses the “Easy” button to demonstrate a point.

They also noted that BOMA continues to lead in all things green. In 2009 BOMA was recognized by the EPA with a 2009 Climate Protection Award and a 2009 ENERGY STAR Award for Sustained Excellence, receiving the ENERGY STAR award for the third straight year. Mackey also cited BOMA’s work with the U.S. Department of Energy to launch the Commercial Real Estate Energy Alliance and the adoption of the 7-Point Challenge by several cities. Zoccola also delivered the report on the Medical Office Buildings Committee, which is preparing for its first stand-alone conference in Chicago, May 5-7.

See more about the MOB Conference.

In his financial report, BOMA International Secretary/Treasurer Kent Gibson explained that while 2009 was a tough year for the industry, BOMA International remains on solid financial footing and ended the year with a positive bottom line.

Dan Chancey, chair of the BOMA 360 Council, reported on the new BOMA 360 Performance Program. In the first six months of the program, close to 50 buildings have been designated and 40 more are in the pipeline. He added that the Council has decided to change the renewal schedule from annual to every three years, though designees will still need to participate in the EER and benchmark with ENERGY STAR every year. Chancey also announced that the Council has developed a guidebook on how to develop a Standard Operating Procedure manual.

Judy Purviance-Anderson with BOMA/Denver Metro delivered reports on the activities of the Government Affairs Committee, the Preparedness Committee and the BOMAPAC Council, during which the Board of Governors passed two new policy positions. The first was a revision to BOMA’s policy on Preserving a Democratic Workplace. The second was a new policy on energy efficiency/green building codes.

John Scott, BOMA/Miami, briefed attendees on the Sustainability Task Force’s new addition to the 7-Point Challenge, which provides guidelines for vendors who want to adopt the challenge. by delivering innovative and cost-saving solutions to BOMA members to deploy in the reduction of energy use in existing buildings.

The 2009 Local Association EER Participation Award Winners were announced during the Board of Governors. The winners are:

Overall Winners
First Prize - BOMA/Houston
Second Prize – BOMA/Sacramento

300 Members Plus
BOMA/Atlanta

150 to 300 Members
 BOMA/Austin
 BOMA/Cincinnati
 BOMA/Cleveland

           Less than 300 Members
                                                                BOMA/Virginia
                                                                BOMA/Portland
                                                                BOMA/Carolinas-West Virginia

BOMA International President Henry Chamberlain ended the program with a report on “the BOMA pulse,” a snapshot of current conditions in the commercial real estate industry and a look at opportunities and challenges ahead. Chamberlain cited stable membership, strong fund balances and a strong financial base as the keys to BOMA local associations’ continued success and noted that some stabilization in office sector jobs will boost recovery for the commercial real estate market.

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Help for Earthquake Victims in Haiti

BOMA International extends its concerns and prayers to all those impacted by the recent earthquake in Haiti. Relief organizations are on site and are asking for help. Here are two ways you can help:

• Donate $10 to the Red Cross to be charged to your cell phone bill by texting "HAITI" to "90999" 
• Contribute online to the Red Cross
• Donate to the Clinton Bush Haiti Fund

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